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It sounds as if your format is dictated to you by your employer.
Whether in the abstract having Word as the primary documentation
medium is another question. For internal docs where the enterprise has
Word '03 as a ubiquitous application, that is one thing. Where the
docs must be readable by those who don't have the latest version of
Word on hand it is quite another story.
However, over time the real question becomes how long the information
must be accessible. For anything that must be readable many years from
now, a proprietary format makes less sense. Look, for example, at the
recent announcement by the State of Massachusetts that they are moving
entirely to OpenDocument formats for all their electronic information.
The rationale they have used is impressively well thought out. I think
it is fairly clear that they will not be the first government entity
that will be moving to a non-proprietary and well-documented format
for their information resources over the next year or two.
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